Question 1

Analyzing the internal environment enables a firm to determine what it can do by identifying resources, capabilities, and core competencies in the internal organization.

Accepted Answer

Analyzing the internal environment allows a firm to evaluate its strengths and weaknesses by identifying its resources, capabilities, and core competencies. This analysis helps the firm to determine what it can do, the areas where it has a competitive advantage, and where it needs to improve.

Question 2

Compared to tangible resources, intangible resources are an inferior source of core competencies.

Accepted Answer

Intangible resources such as knowledge, skills, reputation, and culture can be a superior source of core competencies as they are more difficult to imitate and replicate. Tangible resources such as equipment and facilities can be important, but they are easier to acquire and do not provide a sustainable competitive advantage on their own.

Question 3

Technology has made it more difficult for companies to find ways to develop competitive advantages.

Accepted Answer

Technology has increased access to information and made it easier for competitors to replicate products or services, making it more challenging for companies to develop and maintain sustainable competitive advantages.

Question 4

Firms achieve strategic competitiveness and earn above-average returns by acquiring, bundling, and leveraging their resources for the purpose of taking advantage of opportunities in the external environment in ways that create value for customers.

Accepted Answer

This statement accurately describes how firms can achieve strategic competitiveness and earn above-average returns. They must effectively manage their resources and use them to create value for customers while taking advantage of external opportunities.

Question 5

Value is measured by the variable and fixed costs associated with the production and marketing of a particular product compared with the revenue and profits the product generates.

Accepted Answer

The answer of Value is measured by the variable and...

Question 6

Resources must be combined to form capabilities, as illustrated by Chipotle, which linked fresh ingredients with several other resources, including the marketing and training of employees, as the foundation for customer service as a capability.

Accepted Answer

The statement correctly describes the concept of combining resources to form capabilities, and uses the example of Chipotle to illustrate this idea. Therefore, the answer is A (True).

Question 7

Creating customer value is the source of the firm's potential to earn above-average returns.

Accepted Answer

Creating customer value means that the firm is providing a product or service that is perceived as valuable to the customer, which can lead to customer satisfaction and loyalty. This can result in increased demand for the firm's offerings and potential for higher profit margins, ultimately leading to above-average returns.

Question 8

Although an organization's good reputation is a valuable resource that takes years of superior marketplace competence to achieve, it is not a good basis for building a competitive advantage because it can be destroyed almost instantly by bad publicity.

Accepted Answer

The answer of Although an organization's good reputation is a...

Question 9

In today's global economy, some resources that were traditionally critical to firms' efforts to sell goods are now less likely to be a source of competitive advantage.?

Accepted Answer

With the rise of technology and digitalization, some resources that were once critical (such as physical location, access to distribution channels, and advertising budgets) are no longer as significant in enabling firms to sell goods. Instead, factors such as innovation, customer experience, and brand image have become increasingly important sources of competitive advantage.

Question 10

Capabilities of an organization emerge spontaneously through the interaction of tangible and intangible resources.

Accepted Answer

The answer of Capabilities of an organization emerge spontaneously through...

Question 11

The foundation of many capabilities lies in the unique skills and knowledge of a firm's employees.

Accepted Answer

The statement is true. The skills and knowledge of a firm's employees are the foundation of many capabilities, including innovation, problem-solving, and competitiveness.

Question 12

Resources are the source of capabilities, some of which lead to the development of core competencies.  In turn, some core competencies may lead to competitive advantage.

Accepted Answer

This statement is true. Resources such as knowledge, skills, and technology form the basis of an organization's capabilities. Through the development and deployment of these capabilities, the organization can create core competencies that distinguish it from its competitors. Some of these core competencies may become sources of competitive advantage, allowing the organization to achieve superior performance in its industry.

Question 13

The learning generated by making and correcting mistakes is generally unimportant to efforts to create new capabilities and core competencies.

Accepted Answer

Learning from mistakes is crucial in creating new capabilities and core competencies. It helps in identifying weaknesses and areas for improvement, leading to the development of better solutions and strategies. Therefore, the statement is false.

Question 14

The value of tangible assets, such as the firm's borrowing capacity and its physical plant, is high because these assets can be easily leveraged to derive additional value.

Accepted Answer

The answer of The value of tangible assets, such as...

Question 15

Firms should seek to continually develop new core competencies because all core competencies guarantee above-average profit.

Accepted Answer

While core competencies can lead to above-average profit, there is no guarantee that all core competencies will have this result. Additionally, developing new core competencies can be a resource-intensive process, so firms should carefully assess the potential benefits and risks before pursuing this strategy.

Question 16

Analyzing the internal environment enables a firm to determine what it might do by identifying what opportunities and threats exist.

Accepted Answer

Analyzing the internal environment helps a firm identify its strengths and weaknesses, while opportunities and threats are identified by analyzing the external environment.

Question 17

Walmart uses core competencies, such as information technology and distribution channels, to create value for its customers through its "everyday low prices."

Accepted Answer

Walmart's core competencies in information technology and distribution channels enable it to efficiently operate its supply chain, keep inventory levels low, and offer its customers low prices.

Question 18

The need to meet quarterly earnings results causes managers to accurately examine the firm's internal organization.

Accepted Answer

The answer of The need to meet quarterly earnings results...

Question 19

Understanding how to leverage the firm's unique bundle of resources and capabilities is a key outcome decision makers seek when analyzing the internal organization.

Accepted Answer

Understanding how to leverage the firm's unique bundle of resources and capabilities is indeed a key outcome decision makers seek when analyzing the internal organization. This helps them identify ways to maximize the value of the firm's assets and distinctive competencies, and achieve a sustainable competitive advantage in the marketplace.

Question 20

By themselves, resources can allow firms to create value for customers as the foundation for earning above-average returns.

Accepted Answer

The answer of By themselves, resources can allow firms to...

Quiz 3: The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages